Market Overview

PowerShares Rolls Out 2 More Low Volatility ETFs


As we previously noted 2011 saw the debut of plenty of volatility ETFs. One of those funds was the PowerShares S&P 500 Low Volatility ETF (NYSE: SPLV), an ETF proved to be one of the most successful new funds of 2011, regardless of market niche.

Well, Invesco's (NYSE: IVZ) PowerShares, the fourth-largest U.S. ETF issuer, is looking to capitalize on that success with the debut of two more "low vol" funds, the PowerShares S&P Emerging Markets Low Volatility Portfolio (NYSE: EELV) and the PowerShares S&P International Developed Low Volatility Portfolio (NYSE: IDLV), both of which commenced trading today.

EELV tracks an index that includes all publicly listed equity securities with float-adjusted market values of at least $100 million and annual dollar value traded of at least $50 million from the following countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.

Countries represented in IDLV include Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

The emerging markets low volatility ETF space already has a couple of competitors for EELV to knock heads with including the EGShares Emerging Markets High Income/Low Beta ETF (NYSE: HILO) and the iShares MSCI Emerging Markets Low Volatility ETF (NYSE: EEMV).

Wondering if more low volatility ETFs are wanted by investors? It looks like they are. PowerShares said its PowerShares S&P 500 Low Volatility ETF has surpassed $1 billion in assets under management and the ETF won't even celebrate its one-year anniversary until May.

Posted-In: News Specialty ETFs New ETFs Emerging Market ETFs Intraday Update Markets Trading Ideas ETFs


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